NYSE DOT vs (ArcaX, Inet)

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danjos

DOT vs ECNs
i only trade nyse listed and always use dot or/and direct +. so far never attempted to send order to ecns due to unfamiliarity and my satisfaction with dot (although they sometimes specialist screw your fills). Can somebody help to explain what's the benefits of using ecns vs dots to trade nyse listed stocks?

Comment on comparison of speed , execution prices when sending orders to DOT vs ECNs will be interesting from those who already do this.

Thanks
 
when specialist has the supply, you get instant fills when you turn on direct+ mode on your execution platform. thi order will directly hit his book. however , i heard he can turn off this feature. but for the most part i got my fills ok
 
ECN's can be a nice alternative when the specialist is playing games. Also, I've been able to get short on ECN's while my DOT order doesn't.

Cash
 
Cashonly:
WIth the existing thrade through rule, do you have good rate of succes to short on ECN when stock is going down fast?

Also, just like to confirm whether it is legal to short downtick on ArcaX or INET even for NYSE listed stocks ( I know that this is legal for NASDAQ stock). If so, does the trd through rule still apply and reduce our chance to get fills when shorting on downtick?
Would appreciate any info on this.

I guess NYSE traders need to learn more about NASDAQ trading style. Interestingly 2 of my colleagues (NASDAQ traders) just decided to switch to trade listed stocks after having very rough month this Feb.
 
I am a NYSE trader, but would think that learning nasdaq style would help to anticipate changes in NYSE regulations as it will add more electronic trading which possible involves larger ECN trades). Really don't know how to trade and read the tapes on KLAC QLGC stuffs, just use technicals I guess.
 
Quote from danjos:

Cashonly:
WIth the existing thrade through rule, do you have good rate of succes to short on ECN when stock is going down fast?

Also, just like to confirm whether it is legal to short downtick on ArcaX or INET even for NYSE listed stocks ( I know that this is legal for NASDAQ stock). If so, does the trd through rule still apply and reduce our chance to get fills when shorting on downtick?
Would appreciate any info on this.

I guess NYSE traders need to learn more about NASDAQ trading style. Interestingly 2 of my colleagues (NASDAQ traders) just decided to switch to trade listed stocks after having very rough month this Feb.
More...

Shorting with Arca when it a downtick on the NYSE is OK if it an uptick on Arca since it is an exchange (Pacific). The problem is almost all software doesn't fully realize this and won't fix due the level of programming required. I'm not sure about INET since it was bought by ISLD which is an exchange as well (Cincy I think) but they don't act like one. Hope this helps.
 
Merlin:

From Arca website, I thought I read that SEC shorting on uptick rule doesn't apply there. So, I thought we can even short on downtick in ARCAX or INET?
 
Here's a bit more info in case it helps...

The SEC Short Sale Rule (10a-1) subjects all NYSE-listed stocks to the uptick rule, no matter where they are traded (NYSE, a regional, ARCAEx, etc.). All listed shorts must be executed on a uptick, or zero plus tick, relative to the previous trade in the consolidated system.

There is an exception to this (Rule 17 CFR 240.10a-1(a)(2). ), as mentioned above, that allows a listed exchange (Such as ARCAEx) to base its uptick on "the last trade price reported in that exchange market."

Currently, however, the SEC is evaluating comments on various changes to the short-sale rules including:

* A uniform bid test. If/when it's enacted, it would require that NYSE and NASDAQ National Market System short sales be executed at least one cent above the best bid. It would also eliminate the current NASDAQ rule allowing you to execute shorts at the same price as an uptick bid.

* A two-year pilot suspending the price test altogether. This would apply to large volume stocks (as proposed, a SEC chosen subset of the Russell 1000 index ).

* Elimination of a short-sale exemption for market-makers.

* Elimination of the exception above that allows a listed exchange to base the uptick-rule on trades in its own market.

- Rob
 
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